10/20/2008 10:24:00 AM
Sony Ericsson cuts product range for profitability
Sony Ericsson plans to cut its handset range by a fifth to increase profitability, the company’s president Dick Komiyama said as the manufacturer revealed a loss of £19 million in its third quarter results.
Sony Ericsson also reported a year on year fall in sales, margins and shipments in the company’s. Sales were down from £2,395 in 3Q 2007 to £2,164 in 3Q this year and during the same period margins fell from 31% to 22%.
The manufacturer reported a loss of £19 million compared to a profit of £4.6 million the previous quarter and profit of £303 million in 3Q last year.
To increase efficiency Sony Ericsson is consolidating three handset divisions into one. The company is struggling against falling average selling prices due to increased competition as well as loss of consumer confidence due to the global financial crisis.